PMI-AGC Bahrain Presentation by Saira Karim

April 2014

Importance and relevance of PMI’s Pulse of the Profession reports

The newest edition of the Pulse features feedback and insights from over 2,500

project management leaders and practitioners across North America; Asia Pacific;

Europe, the Middle East, and Africa (EMEA); and Latin America and Caribbean

regions.

Provides guidance to the questions:

• How can mature project management practices lead to a competitive advantage?

• What lessons can be learned from high performers that can be replicated across organizations of all types to improve their value?

Key Themes

• Strategic initiative management• The wide Chasm - Organizational agility• The strategic alignment Imperative• Driving Organizational Success

People

Process

Outcome

• 88% of executives say that strategy implementation is important to their organizations.

• 61% acknowledge that their firms often struggle to bridge the gap between strategy formulation and its day-to-day implementation.

• Very few organizations (9 percent) rate themselves as excellenton successfully executing initiatives to deliver strategic results.

Focus now on:Strategic Initiative

Management to drive organization success through

improved efficiency.

StrategyStrategic Initiatives

Strategic Initiative Management

Definition of a Strategic Initiative

A strategic initiative is an endeavor intended to achieve three interrelated outcomes:

• A boundary-spanning vision or “strategic intent”• Realization of important benefits to “strategic”

stakeholders• Transformation of the organization

Strategic initiative management

Strategic Initiatives

• Strategy - position & fit

Identify & prioritize the

initiatives that will close specific

performance gaps

Implement & execute

initiatives through

adoption of best practice

Portfolio, Program &

Project Management.Governance

Progress reporting to

senior management

• High-performing organizations successfully complete 89% of their projects, while low performers complete only 36% successfully.

• Projects and programs that are aligned to an organization’s strategy are completed successfully more often than projects that are not. PMI’s earlier research reported that aligning projects with strategic objectives has the greatest potential to add value to an organization.

“Strategy is important but results are only delivered through execution”

Saira Karim

Question: What practices can we focus on to

improve value & competitive advantage?

This report highlights key practices that maximize organizational value.

• Mature project management capabilities

• Focus on talent

• Change management

• Insist on a benefits realization review.

The wide Chasm

PMI’s 2014 Pulse of the Profession research shows that organizations face a wide chasm between their actual state and the state of success.

“Organizations lose an average of $109 million for every $1 billion spent on

projects” (Figure 1)

2012

2013

2014

$120 million

$135 million

$109million

Chart to show US$ lost on projects for every US$1 billion spent

Reported US$ lost for that year

Metric: $lost = average % of projects not meeting goals X average % of project budget lost if project fails.

Declining focus on training / development of PM’s

Shift in role of PMO’s to become more strategic

Organizational Agility

Organizations that are highly agile, nimble and able to respond quickly to changing market dynamics complete more of their strategic initiatives successfully than slower, less agile organizations.

Only 15% of organizations report high organizational agility

“The bottom line is that a lack of organizational agility significantly diminishes the success of projects

and strategic initiatives”

The strategic alignment imperative

IBM’s research reveals that in the next three to five years, a growing number of CEOs expect to include customers in

every part of their business, and 40 percent more CEOs plan to include customers in their organization’s business

strategy development compared to today.

Customers will have more of a role in shaping business strategy:• A shift in addressing customer demands• A shift in shaping strategy• A shift in customer expectations

Driving organizational success

*People *Processes*Outcomes

Understanding what practices, both strategic and tactical, high- performing organizations

have in place is crucial to improving an organization’s success.

Bridging the wide chasm

Along with high alignment of their projects to organizational strategy and organizational agility, high-performing organizations succeed through a strategic focus on:

people,

processes and

outcomes.

Driving Organizational Success – People

Talent management

Problem

Few organizations are focusing on knowledge transfer and this might be hampered by the fact that nearly two-thirds of organizations report using outsourced or contract project managers.

PMI’s Pulse of the Profession In-Depth Report: The Competitive Advantage of Effective Talent Management, showed that organizations that align their talent management to strategy have more successful projects and waste fewer project dollars.

“Our research revealed that high-performing organizations are more than twice as likely as their low-performing counterparts to align talent management to organization strategy—a significant competitive advantage”.

Change Management

Vital to effective organizational change is the executive sponsor—the person within the organization who champions change.

PMI’s Managing Change in Organizations: A Practice Guide outlines the importance of executive sponsors on projects and programs that drive organizational change.

Our latest Pulse research confirms that actively engaged sponsors is again the top driver of project success.

Driving Organizational Success - People

The Pulse data demonstrates that process maturity leads to success. Despite this, the findings in this report reveal that many organizations are not taking sufficient action to mature their processes.

Driving Organizational Success - Processes

Benefits realization is the practice of ensuring that the outcome of a project produces the projected benefits claimed in the business case.

Driving Organizational Success - Outcomes

This is achieved through the establishment, measurement and communication of the expected benefits of an organization’s initiatives.

Conclusion

Key themes

• Strategic initiative management

• The wide Chasm - Organizational agility

• The strategic alignment Imperative

• Driving Organizational Success

People

Process

Outcome

Key practices

• Focus on talent

• Change management

• Mature project management

capabilities

• Insist on a benefits realization

review.